Govt intervened to curb higher toll hikes – report

The government had earlier stepped in to prevent the initial proposed toll hikes at three highways that would’ve seen the implementation of costlier toll rates, according to a report by theSun. Works Minister, Datuk Fadillah Yusof, had earlier revealed that three highways had proposed to raise their toll rates by RM2 but the government instead insisted on a RM1 raise.

Concessionaires were permitted to raise the toll rates as per the contracts but did not do so since 2008. “We have been holding on actually, it was supposed to be increased in 2014 but Prime Minister Datuk Seri Najib Abdul Razak said no and to let us study in depth and have further negotiations with the concessionaires.”

“After the negotiations, we had to finally increase the toll rates though the increase seems high,” he added. Despite the toll hikes, the government is still expected to be paying a fair sum of money to the concessionaires as compensation. Without the recent toll hikes, the government would have had to pay a total of RM1.6 billion in compensation by next year.

“Although the toll increase has been implemented, we are still paying RM510 million in compensation for the Jan-Oct 15 period because of the delay in raising the toll rates which should have been done in January this year,” he commented. Fadillah said that the money paid as compensation could have been channelled to projects that would better the community.

For a recap on all the recent highway toll hikes, check out our roundup post right here.

An “actor” by training, Gregory Sze realised that he has had enough of drama in his life. Following his number one passion (acting was actually number two), he decided to make the jump into the realm of automotive journalism. He appreciates the simple things in life – a simple car with nothing but back-to-basics mechanical engineering and minimal electronics on board.

What lies. All concessionaires are majority owned by the Government through Khazanah, EPF, PNB and other GLCs. Infact, you can safely say, Government owns all the concessionaires. And each of these concessionaires are all managed by the big UMNO dungus.

1. All of a sudden, our government becomes so hyper-powerful.
2. If you can say that a pencil is S-shaped, you can say anything else.
3. The best way to extend the contract to 2938 is by postponing the proposed price hike for 5 years. Or, it should be: Postpone the hike for one year, from 2016, postpone to 2017, and then extend the contract for another 99 years. Cannot question, otherwise sent to Jupiter under ISA-2020.
4. I am powerful enough to change any contracts, or interpret any rules according to my wish, I only use that magic power to sapu money into my koceks, why should I use it for the sake of my hambas?

for once i know for a fact that the govt is not lying. most of the highway concession contracts were drafted years ago (think ~20-30 years ago, plus hway the oldest at 29 yrs ago) and it is a fact that the concession are allowed to increase the toll rate every 2 years. Nothing can be done to change this contract as this were done during mahathir time (to feed his crony friends perhaps?).

Well just think of it this way, if the does not allow concessionaire to raise toll, govt have to compensate them. and compensation money=rakyat money, but then if toll increase then ONLY the user of the hway needs to pay it. either way its still a lose-lose situation for the taxpayers…all to feed mahathir cronies from 30 years ago. sigh.

The G has the power. if they are really sincere, they can renegotiate with concessionaires and sign a new form of agreement. It can be done, but is it to be done? Since the concessionaires director coming from UMNOputra, then likely the UMNO membership fees, bus transport to PWTD every year, kain batik, kain pelikat, the white and red dons are paid with the money instead.

By increasing toll rate, more $$$ can go into the BN cronies’ pocket. And, they can continue to give BR1M “ha-ra-suah-ciu” to Kampung folks and they will continue to vote for BN in the next GE. Win-win for BN.

Please be rational guys.. We have to be fair to the people who don’t use highways like those in Sabah, Sarawak and Kelantan. So the money should be channeled for economic activities and development there. So please this is not the story of Hunger Games.. negeri kaya mcm Terengganu, Sabah, Sarawak (oil & gases) must feed KL & Selangor people only.

Do u really think the money will be used for the development in those states? OMG, you are so naive! Even the money budgeted for the projects mostly will end up in the cronies’s pocket. Just look at KLIA2 and Hospital Shah Alam, the cost is way over the budget.

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